• Andrew Fox

What do the NHL playoffs and the stock market have in common?

Updated: Apr 22, 2020

After watching Tampa Bay, Washington, Calgary and Nashville all losing in the first round of the NHL playoffs I had two realizations:

  1. There’s a reason my wife won’t let me make sports bets.

  2. There’s a reason my wife won’t let me make sports bets.

On second thought, looks like it was just one realization… After coming to this initial realization I had a second thought that there was a lesson to be learned here which is that we can’t determine future results from past performance. In theory, based on how well the top teams in each conference played in the regular season they should have been a shoe-in to make it to the second round of the playoffs. In reality, there are an infinite amount of moving parts in sports that make the future nearly impossible to predict and the same can be said for investments.


All too often I hear investor’s rationale for investing in a company, sector, region, etc. as being: “historically speaking, this (insert investment here) has consistently outperformed the market.” This is a losing investment approach to take and, as can be seen in the 2019 NHL playoffs, it is likely it will not payoff.